MIRA
INFORM REPORT
IDENTIFICATION DETAILS
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Name : |
RELIANCE COMMUNICATION LIMITED |
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Formerly Known As : |
RELIANCE COMMUNICATION VENTURES LIMITED |
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Registered Office : |
H Block, 1st Floor, Dhurubhai Ambani Knowledge (City), Navi
Mumbai – 400710, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
26.07.2005 |
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Com. Reg. No.: |
147531 |
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CIN No.: [Company
Identification No.] |
L45309MH2004PLC147531 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
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RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 1026000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of reliance ADA Group, Chaired by Mr. Anil Ambani.
Trade relations are fair. Business is active. General financial position is good.
Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
H Block, 1st Floor, Dhurubhai Ambani Knowledge (City), Navi
Mumbai – 400710, |
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Tel. No.: |
91- 22- 30386286 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Surendra Kanmal Pipara |
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Designation : |
Director |
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Address : |
1702, Raheja Classique Blog, No.1, New |
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Date of Birth/Age : |
17.12.1963 |
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Date of Appointment : |
22.07.2005 |
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Name : |
Mr. Ramesh Ganpati Shenoy |
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Designation : |
Director |
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Address : |
E – 115, Bussa Apartments, B M Bhargava Marg, Santakruz (West), Mumbai
- 400064 |
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Date of Birth/Age : |
07.10.1949 |
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Date of Appointment : |
15.07.2004 |
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Name : |
Mr. Hasit Navinchandra Shukla |
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Designation : |
Director |
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Address : |
222, |
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Date of Birth/Age : |
28.08.1962 |
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Date of Appointment : |
15.07.2004 |
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Name : |
Mr. Sandeep Shyamnarayan Tandon |
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Designation : |
Director |
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Address : |
307, Parekh Market, |
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Date of Birth/Age : |
11.11.1949 |
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Date of Appointment : |
09.08.2005 |
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Name : |
Mr. Laxmidas Vallabhdas Vitthaldas Merchant |
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Designation : |
Director |
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Address : |
901, |
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Date of Birth/Age : |
14.11.1959 |
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Date of Appointment : |
09.08.2005 |
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Name : |
Mr. Gautam Bhailal Doshi |
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Designation : |
Director |
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Address : |
B 131, Grand Paradi, August Kranti Marg, Mumbai – 400036, |
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Date of Birth/Age : |
23.12.1952 |
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Date of Appointment : |
09.08.2005 |
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Name : |
Mr. Deepak H Shourie |
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Designation : |
Director |
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Address : |
A- 31, West End, |
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Date of Birth/Age : |
01.05.1949 |
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Date of Appointment : |
30.04.2006 |
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Directorship of Other Companies : |
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CIN No.: |
U74300DL1996ULT082136 |
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Company Name : |
Discovery Communications |
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CIN No.: |
U92132MH2004PTC136158 |
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Company Name : |
Set Discovery Private Limited |
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CIN No.: |
U74899DL1999NPL101705 |
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Company Name : |
Indian Broadcasting Foundation US 25 Public Company |
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CIN No.: |
U00000DL2001PTC109740 |
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Company Name : |
Ideal Media Private Limited |
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Name : |
Mr. Anil Dhurubhai Ambani |
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Designation : |
Director |
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Address : |
39, Sea Wind, Cuffe Parade, Colaba, Mumbai – 400005, |
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Date of Birth/Age : |
04.06.1959 |
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Date of Appointment : |
12.05.2006 |
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Name : |
Mr. Ramchandra Jayaram |
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Designation : |
Director |
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Address : |
417, Facility Quarters, Indian Institute of Management, Bannerghatta, |
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Date of Birth/Age : |
01.06.1957 |
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Date of Appointment : |
24.03.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 17.07.2007
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Names of Shareholders |
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No. of Shares |
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Reliance Energy Investment Private Limited |
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2500 |
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Reliance Energy Management Service Private Limited |
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2500 |
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BSES Trading Private Limited |
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2500 |
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Powersufer Intractive ( |
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2490 |
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Mr. Vinayak V Joshi |
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10 |
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Total |
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10000 |
AS ON 17.07.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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14.75 |
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Bodies corporate |
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68.02 |
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Directors or relatives of directors |
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0.85 |
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Other top fifty shareholders |
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0.38 |
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Others |
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8.62 |
BUSINESS DETAILS
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Line of Business : |
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GENERAL INFORMATION
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Bankers : |
Axis Bank, Trishul, 3rd Floor, Opp Samartheshwar Temple, Law
Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountant |
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Address : |
Office No.G- 12 and 712- 713, Tulsiani Chambers, 212, Nariman Point,
Mumbai – 400021, |
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Tel No.: |
91- 22- 39821819 |
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Fax No.: |
91- 22- 39823020 |
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Email : |
CAPITAL STRUCTURE
AS ON 17.07.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3000000000 |
Equity Shares |
Rs. 5/- Each |
Rs.15000.000
Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2044614990 |
Equity Shares |
Rs. 5/- Each |
Rs.10223.074 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 [27 Months] |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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10223.100 |
0.500 |
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2] Share Application Money |
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0.000 |
6115.700 |
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3] Reserves & Surplus |
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195032.300 |
147834.200 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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205255.400 |
153950.400 |
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LOAN FUNDS |
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1] Secured Loans |
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51135.700 |
0.000 |
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2] Unsecured Loans |
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94542.700 |
0.000 |
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TOTAL BORROWING |
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145678.400 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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350933.800 |
153956.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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180984.500 |
1662.400 |
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Capital work-in-progress |
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21856.000 |
0.000 |
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INVESTMENT |
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54344.300 |
120740.900 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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985.100 |
0.000 |
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Sundry Debtors |
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8021.100 |
0.000 |
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Cash & Bank Balances |
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684.500 |
0.500 |
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Other Current Assets |
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112941.300 |
2.900 |
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Loans & Advances |
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78438.400 |
31586.200 |
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Total
Current Assets |
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201070.400 |
31589.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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63093.300 |
10.500 |
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Provisions |
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44228.100 |
25.700 |
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Total
Current Liabilities |
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107321.400 |
36.200 |
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Net Current Assets |
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93749.000 |
31553.400 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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350933.800 |
153956.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 [27 Months] |
31.12.2005 |
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Sales Turnover |
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117252.600 |
0.000 |
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Other Income |
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366.500 |
132.600 |
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Total Income |
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117619.100 |
132.600 |
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Profit/(Loss) Before Tax |
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24208.500 |
88.500 |
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Provision for Taxation |
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120.000 |
32.000 |
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Profit/(Loss) After Tax |
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24088.500 |
56.500 |
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Expenditures : |
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Raw Material Consumed |
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41780.800 |
0.000 |
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Salaries, Wages, Bonus, etc. |
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6399.000 |
11.100 |
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Managerial Remuneration |
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445.000 |
0.000 |
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Payment to Auditors |
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61.400 |
0.200 |
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Interest |
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2323.800 |
0.000 |
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Insurance Expenses |
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127.100 |
0.000 |
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Power & Fuel |
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2667.400 |
0.000 |
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Depreciation & Amortization |
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18361.200 |
27.400 |
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Other Expenditure |
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21244.900 |
5.400 |
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Total Expenditure |
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93410.600 |
44.100 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 [27 Months] |
31.12.2005 |
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PAT / Total Income |
(%) |
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20.48 |
42.60 |
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Net Profit Margin (PBT/Sales) |
(%) |
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20.64 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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05.28 |
00.03 |
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Return on Investment (ROI) (PBT/Networth) |
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1.19 |
00.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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12.49 |
00.02 |
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Current Ratio (Current Asset/Current Liability) |
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1.87 |
872.64 |
LOCAL AGENCY FURTHER INFORMATION
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This form is for |
Modification of
charge |
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Charge
identification number of the modified |
80013860 |
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Corporate
identity number of the company |
L45309MH2004PLC147531 |
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Name of the
company |
RELIANCE COMMUNICATION VENTURES LIMITED |
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Address of the
registered office or of the principal place of business in |
H Block, 1st Floor, Dhurubhai Ambani Knowledge (City), Navi
Mumbai – 400710, |
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Type of charge |
Movable Property Immovable
Property |
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Particular of
charge holder |
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Nature of
description of the instrument creating or modifying the charge |
Amendment to
unattested memorandum of hypothecation dated 23rd July, 2004 Amendment to Indenture
of mortgage dated 23rd July, 2004
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Date of
instrument Creating the charge |
01.03.2007 |
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Amount secured by
the charge |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Union Bank of Terms of
Repayment Union Bank of Dena Bank- Bullet
Repayment on third anniversary of drawdown HDFC Bank-
20(Twenty) Equal Quarterly Installments Extent and
Operation of the charge The security created
in favors of the security trusted for the benefit of the lenders viz. Union
Bank of India, Dena Bank, HDFC Bank as aforesaid shall rank pari- passu with
that created in favors of/ for the benefit of the working capital bankers. Others The mortgage and
charge created under the in debenture and the memorandum operates as
security, inter alia, for the due repayment/ payment of the mortgage debt
owed by the borrower to the lender. |
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Short particulars
of the property charged |
As per optional
attachment- Annexure A |
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Date of latest
modification prior to the present modification |
07.10.2005 |
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Particulars of
the present modification |
To give effect to
the repayments and amendment to the security clause in the indenture of mortgage
and deed of hypothecation It has been
agreed to exclude assets from the security clause, by defining excluded
assets as follows- “Excluded Assets” shall mean and include: Permitted
Investment Long term
investments by the borrower in its subsidiaries |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.28 |
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|
1 |
Rs.73.43 |
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Euro |
1 |
Rs.68.22 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
62 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|